Prospect Capital Corporation (NASDAQ:PSEC) Announces Monthly Dividend of $0.04

Prospect Capital Corporation (NASDAQ:PSEC) announced a monthly dividend on Thursday, May 7th. Investors of record on Wednesday, July 29th will be paid a dividend of 0.035 per share by the financial services provider on Thursday, August 20th. This represents a c) dividend on an annualized basis and a dividend yield of 16.8%. The ex-dividend date of this dividend is Wednesday, July 29th.

Prospect Capital has decreased its dividend payment by an average of 0.0%annually over the last three years. Prospect Capital has a dividend payout ratio of 114.9% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

Prospect Capital Stock Performance

Shares of NASDAQ:PSEC opened at $2.50 on Friday. The company has a market capitalization of $1.21 billion, a price-to-earnings ratio of -3.08 and a beta of 0.82. The firm’s 50 day simple moving average is $2.67 and its 200 day simple moving average is $2.70. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.74 and a quick ratio of 0.74. Prospect Capital has a fifty-two week low of $2.45 and a fifty-two week high of $3.77.

Prospect Capital (NASDAQ:PSEC) last announced its quarterly earnings results on Thursday, May 7th. The financial services provider reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.05. The business had revenue of $150.07 million for the quarter, compared to the consensus estimate of $163.23 million. Prospect Capital had a negative net margin of 39.56% and a positive return on equity of 11.91%.

Insider Activity

In other Prospect Capital news, COO M Grier Eliasek acquired 942,800 shares of the stock in a transaction dated Wednesday, February 11th. The shares were bought at an average cost of $2.92 per share, for a total transaction of $2,752,976.00. Following the completion of the acquisition, the chief operating officer directly owned 3,443,930 shares of the company’s stock, valued at approximately $10,056,275.60. This trade represents a 37.69% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.03% of the stock is owned by company insiders.

Institutional Trading of Prospect Capital

A number of hedge funds and other institutional investors have recently made changes to their positions in PSEC. Goldman Sachs Group Inc. raised its holdings in shares of Prospect Capital by 29.3% in the first quarter. Goldman Sachs Group Inc. now owns 393,034 shares of the financial services provider’s stock valued at $1,611,000 after purchasing an additional 89,139 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Prospect Capital by 140.0% in the first quarter. Empowered Funds LLC now owns 88,397 shares of the financial services provider’s stock valued at $362,000 after purchasing an additional 51,562 shares during the last quarter. Jump Financial LLC acquired a new stake in shares of Prospect Capital in the second quarter valued at approximately $87,000. Qube Research & Technologies Ltd acquired a new stake in shares of Prospect Capital in the second quarter valued at approximately $116,000. Finally, Raymond James Financial Inc. raised its holdings in shares of Prospect Capital by 0.5% in the second quarter. Raymond James Financial Inc. now owns 844,465 shares of the financial services provider’s stock valued at $2,685,000 after purchasing an additional 3,880 shares during the last quarter. 9.06% of the stock is currently owned by institutional investors and hedge funds.

About Prospect Capital

Prospect Capital Corporation is a publicly traded business development company listed on the Nasdaq stock exchange that specializes in providing private debt and equity financing solutions to middle-market companies across the United States. Structured as a closed-end, non-diversified management investment company under the Investment Company Act of 1940, Prospect Capital offers investors access to a diversified portfolio of senior secured loans, subordinated debt and selective equity interests in privately held businesses.

Since its founding in 2004, Prospect Capital has focused on tailoring financing structures to meet the growth, acquisition and recapitalization needs of its portfolio companies.